China's Government Toughens Control Over Property Market
China has been imposing controls across the country to rein in rocketing property prices, often fueled by speculators. With a flurry of recent property market controls, Chinese authorities have demonstrated their will to keep a lid on housing prices, not just in metropolises but also in smaller cities.
In late April and early May, the Ministry of Housing and Urban-Rural Development (the China’s top property regulator) arranged talks with senior government officials from 12 cities, mostly in the northeast and central China, on real estate market regulation.
According to the latest statistics from Centaline Property, over 40 cities unveiled property market regulations a total of 50 times in May, a monthly record for frequency. While home prices in the country's top-tier cities remain stable due to tight regulation, the market in smaller cities has showed signs of perking up.
Tough measures to cool the property market in China's resort island of Hainan have put the brakes on a real estate boom and underscore the policy risks developers and investors face as the government tries to rein in prices. Home prices in Hainan, known for its resort-lined beaches, recorded China's second-fastest monthly price increase in April, spurred by Beijing's commitment to promote the island province as a tourism hub and free trade zone.